by Calculated Risk on 1/14/2007 11:27:00 AM

Excerpt from Jon Lansner at the OC Register: Insider Q&A with local lender

Lansner: What are your home-buying clients thinking? What's the popular financing for this crowd?

Aaron [local lender]: The buyers that I have consulted with lately are first time homebuyers. They are feeling a bit of a pinch, but are able to qualify using strategic financing. We structure the deal using a seller financed buy-down of the interest rate. The beauty of this is that the buyer receives a below market interest rate to help them ease into the home. Additionally, the tax write-off afforded through the pre-paid interest on the purchase loan is given to the buyer in the year the purchase closes. It doesn't matter that the seller paid for the buy-down.

"Strategic financing".

Seller "buy-down" of interest rate.

Help the buyer "ease into the home".

File under phrases no one really wants to hear (at least no one associated with the housing market).